Rule Would Expand CFIUS Coverage of Real Estate Transactions Near Military Installations
On Monday, the U.S. Department of the Treasury, announced a proposed rule that would expand Committee on Foreign Investment in the United States (CFIUS) jurisdictions over transactions near military installations.
The Treasury, as chair of the CFIUS, oversees various transactions by foreign persons regarding real estate across the country. Part of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), legislation allows CFIUS to review the purchase or lease of real estate in close proximity to a military installation or sensitive area by any foreign person. The current regulations identify a subset of military installations that are covered by CFIUS’s jurisdiction.
“Today’s proposed rule is another example of CFIUS’s continuing commitment to hone our tools to protect U.S. national security, and is a significant milestone in safeguarding critical U.S. military installations,” Paul Rosen, Assistant Secretary for Investment Security with the Treasury Department, said. “Working closely with the U.S. Department of Defense and other CFIUS members, we will remain responsive to the evolving nature of the risks we face to ensure we are protecting our military installations and related defense assets.”
Treasury’s update rule would add over 50 military installations across 30 states to the list of areas over which CFIUS has jurisdiction. The proposed rule would expand the reach of CFIUS’s jurisdiction while maintaining a focus on national security, officials said.
“President Biden and I remain committed to using our strong investment screening tool to defend America’s national security, including actions that protect military installations from external threats. CFIUS plays an integral role in U.S. national security by thoroughly reviewing real estate transactions near sensitive military installations, and this proposed rule will significantly expand its jurisdiction and ability to accomplish this vital mission,” Treasury Secretary Janet L. Yellen said.